Uber started as ‘private luxury car service’ for

Uber Technologies is a privatelyheld, global, transportation company based on technology is rapidly expandingworldwide started its operations in 2009, founded by Travis Kalanick andGarrett Camp in San Francisco, California. The company was initially started as’private luxury car service’ for the executives of Silicon Valley. The companymade profits from this niche market by linking its drivers with the passengers(customers) through a smartphone technology via an app.This service made a rapid growthin its first six years and it was highly successful startup.

by 2014 it was availablein almost 53 countries and 200 cities of the world. The growth by rapidgeographical expansion has led to this success. Such expansions attracted highprofile investors such as Google and Ashton Kutcher and also the large venturecapital firms.Uber adopted surge pricing strategy.Fares fluctuated and adjusted according to a mathematical formula. This strategywas considered against the laws but Kalanick defended it and sometimes loweredsome of its rates. Uber kept 20% of the fare and paid the driver 80%. Its yearlyrevenue was about $726 million.

Business model was simply aboutride-sharing platform for keeping consumers and drivers connected andsatisfied. It did not directly hire drivers just connect them with thepassengers. It was offering different types of services varying worldwide.

Passengers can select from the available types like UberX, UberXL, Uber Black,UberSUV, and UberTaxi.it was providing several advantages to drivers, they wereguaranteed to be paid.it also had specific criteria to for its driversmentioned on its website.Uber faced number of challengesfrom the arising conflicts from the taxi and limo regulatory agencies but itcountered these efforts by insisting that its merely a service nottransportation company.

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It also faced safety issues, for that it claimed tocheck driver background checks, extensive screening and insurance.Taxi andlimo were the traditional competitors of Uber while another group of companieshaving the same business model were a major threat to Uber these includingLyft, Hailo and Sidecar. Lyft was one of the largest competitors with differentialpositioning strategy as anti-UBER and offer peer to peer rideshare service. Uberresponded to Lyft strategies by advertisning. Internationally Uber competitorwas Didi Kuaifi in China, partnered with Lyft in 2016.As socialmedia is one the biggest platform for advertising and promoting, Uber also startedits promotion through Facebook, twitter and YouTube. Its motto ‘Everyone’sPrivate Driver” was there on these platforms. Kakanick designed its logohimself and he also used his personal account for promoting.

In addition italso performed other promotional activities to grow its business.As withservice Uber also started product offering in the delivery space like UberEATSand UberRUSH for food and items delivery’s .Uber continued its growth in such servicesAmazon came up with the delivery option on demand. So should Uber compete withAmazon in this market or should focus on its core services? Should it also needto continue its growth scale platform?